Destination Maternity announced that it recently started
renovations on its 74,000-square-foot building Moorestown, N.J., and plans to
move its corporate headquarters there in late 2014. The company's distribution
operations will make the move to a 400,000-square-foot facility in Florence,
N.J. by mid-2015.
The company expects to close on the sale of its current
headquarters/distribution facility at 456 N. 5th St. by the end of fiscal 2014,
the company said in its Q3 earnings report.
Destination Maternity's operations are currently split
between the North 5th Street location and the Philadelphia Navy Yard. The
company got a 10-year benefits package from the Grow New Jersey Assistance
Program worth $40 million.
Other charges related to the facility relocation are
approximately "$1.4 million of pretax income, or approximately $0.9
million income after tax ($0.06 per diluted share), for fiscal 2014, and (2)
approximately $2.4 million of pretax expense, or approximately $1.5 million
expense after tax ($0.11 per diluted share), for fiscal 2015."
Once the company is fully operational in both New Jersey
locations, its annualized after-tax earnings benefit from the relocations will
be about $0.10 per diluted share, the company reported. Its ongoing annualized
after-tax cash benefit from the relocations will be approximately $4 million.
"Capital expenditures associated with the relocations
are planned at between $20 and $22 million for fiscal 2014, with nearly $4
million of this amount expected to be offset by construction allowance
contributions from our landlord. Additionally, we expect approximately $16
million of capital expenditures for the relocations in fiscal 2015," the
company said.
Source: Philadelphia
Business Journal
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